K O Transmission Company

Original Volume No. 1

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Effective Date: 11/02/1998, Docket: RP99- 82-001, Status: Effective

Original Sheet No. 94A. Original Sheet No. 94A : Effective

GENERAL TERMS AND CONDITIONS (continued)

12. Nominating, Scheduling and Monitoring (con't.)

(iv) With respect to (i), (ii) and (iii) above, if there is no response

to a

Request for Confirmation or an unsolicited Confirmation Response,

Transporter shall provide Customer with the following information to

explain why the nomination failed, as applicable:

1. Transporter did not conduct the confirmation;

2. Customer is told by Transporter that the upstream confirming party

did not

conduct the confirmation;

3. Customer is told by Transporter that the upstream Customer did not

have the

gas or submit the nomination;

4. Customer is told by Transporter that the downstream confirming

party did

not conduct the confirmation;

5. Customer is told by Transporter that the downstream Customer did

not have

the market or submit the nomination.

(e)

When a Shipper has more than one receipt point or more than one delivery

point, such

Shipper shall specify in its nomination the supply reduction priorities and

delivery reduction priorities (Priority Reduction List) to be utilized at the

receipt points or delivery points in the event of a loss of volume at the

receipt points or delivery points.

(f)

If only partial confirmations are received by Transporter from the upstream

entity delivering gas on behalf of the Shipper, Shipper's nominations shall be

reduced in accordance with the priorities set forth on the Shipper's Priority

Reduction List.

(g)

In the event Shipper's gas is not confirmed, Transporter shall have no

obligation to deliver such unconfirmed gas to Shipper. If after Shipper's gas

is confirmed, Transporter is notified that Shipper's gas is not available,

then Transporter may cease deliveries.